First Home Buyer Complete Guide

💰 The Affordability Reality Check

Before you start searching, know these numbers cold:

🔍 The Hidden Costs Nobody Tells First-Timers

• 📜Stamp Duty — 6%: On agreement value. ₹1 Cr flat = ₹6L stamp duty. Non-negotiable, government mandated. Women buyers get 1% concession in some states (not Maharashtra currently).
• 📋Registration — 1%: Capped at ₹30,000. Paid at time of agreement registration. Requires both parties or POA.
• 🧾GST — 5%: Only for under-construction properties. ₹1 Cr flat = ₹5L GST. Ready-to-move = ₹0 GST. This alone is a reason to prefer ready properties.
• 🅿️Parking — ₹3–10L: Often charged separately. Open parking cheaper than covered. Some builders include 1 free. Always negotiate.
• 🏗️Floor Rise — ₹20–100/sqft/floor: Above 4th or 8th floor. 100% negotiable. Can add ₹2–8L to total cost.
• 🛋️Interiors — ₹5–25L: Basic semi-furnished: ₹5–8L. Full modular: ₹12–25L. Budget this from day one.
• 🏢Society Deposit — ₹50K–2L: One-time membership + share certificate. Varies by society.
• 📦Moving Costs — ₹20K–50K: Packers, movers, setup. Small but forgotten.

📉 Tax Benefits for Home Buyers (Section 80C & 24b)

• ✅Section 80C — ₹1.5L/yr: Deduction on principal repayment of home loan. Also covers stamp duty and registration in the year of purchase.
• ✅Section 24(b) — ₹2L/yr: Deduction on interest paid on home loan for self-occupied property. If let out, no limit on interest deduction.
• ✅Section 80EEA — ₹1.5L/yr: Additional interest deduction for first-time buyers (stamp value ≤ ₹45L). Check if still available in current FY.
• 💡Combined benefit: Up to ₹5L deduction/year = save ₹1.5L+ in tax (30% bracket). This effectively reduces your EMI cost by ₹12,500/month.

🚫 10 Mistakes First-Time Buyers Make

• 1️⃣Budgeting only the listing price. You need 12-18% more. Use our Budget Planner to see the real number.
• 2️⃣Not getting pre-approved for a loan. Know your exact loan amount BEFORE you start looking. It prevents heartbreak.
• 3️⃣Falling for "pre-launch" offers. Lower prices = higher risk. No RERA, no construction, no guarantee. Wait for RERA registration at minimum.
• 4️⃣Comparing super built-up areas. Always compare CARPET area. A "1000 sqft" flat with 65% loading = only 650 sqft carpet. Ask for RERA carpet area.
• 5️⃣Not visiting at different times. Visit in monsoon (leaks?), at night (safety?), during rush hour (commute?). One sunny Sunday visit tells you nothing.
• 6️⃣Skipping legal due diligence. Hire YOUR OWN lawyer. Builder's lawyer works for the builder. ₹15-25K for a title search can save you crores.
• 7️⃣Ignoring maintenance costs. ₹4-15/sqft/month is typical. A 1000 sqft flat = ₹4K-15K/month FOREVER. Ask existing residents, not the builder.
• 8️⃣Not checking builder's delivery track record. Use our Builder Report Card. Past delays predict future delays.
• 9️⃣Rushing under pressure. "Only 2 units left" and "price going up tomorrow" are sales tactics. Good properties don't vanish overnight.
• 🔟Not factoring in commute cost. A cheaper flat 90 min from work costs you 3 hours/day = 750 hours/year. That's a month of your life, every year.

🏠 Ready vs Under-Construction — Which Is Better?

• ✅Ready-to-Move: No GST (save 5%), see what you're getting, move in immediately, no possession delay risk. Higher price but lower total risk.
• ⚡Under-Construction: 10-20% cheaper, newer amenities, payment plan flexibility. But: 5% GST, possession delay risk, quality uncertainty.
• 💡First-timer recommendation: Start with ready-to-move. You get certainty, no GST, and can see/feel the actual flat. Upgrade to under-construction for your second home when you understand the market better.